Dolce & Gabbana evaluated at $5,3 billion

Jan 16, 2013

Despite the ongoing legal suit brought against Dolce & Gabbana by Italy’s tax police over embezzlement, Dolce & Gabbana has been thriving, mostly due to its higher end luxury positioning as well as bringing in-house most of its production. Data compiled by Bloomberg shows that Dolce & Gabbana is valued at $5.3 billion, applying the 1.1 billion euros ($1.5 billion) revenue in 2011 as reported by the company to the average enterprise value-to-earnings before interest, tax, depreciation and amortization and price-to-earnings multiples of four publicly traded peers: London-based Burberry, Ralph Lauren Corp., Prada and Hugo Boss. Enterprise value is defined as market capitalization plus total debt minus cash.

Domenico Dolce, who is Dolce & Gabbana’s chairman, owns a 41.8 percent stake in the company, filings with the Italian Chamber of Commerce show, giving him a net worth of at least $2.2 billion. Stefano Gabbana, who is president, controls a 40 percent stake valued at $2.1 billion.

The remainder of the company is held by Dolce’s siblings, Alfonso and Dorotea, according to Orbis, a database of company information published by Bureau van Dijk. Paola Locati, a Dolce & Gabbana spokeswoman, said they declined to comment on the net worth estimates.